Due to the current Coronavirus pandemic the government have released a temporary scheme open to all UK employer starting from 1 March 2020 for a minimum period of three months.
The Coronavirus Job Retention Scheme (CJRS) is designed to support employers whose operations have been affected by Coronavirus.
What is Furlough?
Furloughing is a way of retaining employment amidst the current pandemic. Employees are placed on a leave of absence, whist still receiving at least 80% of their monthly earnings.
I’m an Employee – What now?
If your Employer has taken the decision to place you on furlough, then you will not be required to work until you are given further notice. You will however still receive 80% of your wage, with some employers opting to top up the remaining 20%. Whilst on furlough the usual income tax and other
deductions will be applicable.
To be entitled to the subsidy an Employee can not undertake work for or on behalf of the organisation. This includes providing any services or generating any revenue.
Employers – How do I do it?
The scheme is open to all UK employers that had created and started a PAYE payroll scheme on 28 February 2020.
Employers need to inform their employees that they are being furloughed in the most appropriate manner. They can then use the online portal to claim up to 80% of the furloughed employees’ wages up to a maximum of £2,500.00 a month. Alongside this Employers can claim for the associated National Insurance contributions and pension contributions. Employers can use the CJRS at anytime during the current three-month period and do not have to place their entire workforce on furlough.
What Employers can claim?
Any UK organisation with any number of employees can apply, including:
- Agency workers paid through PAYE
- Public Authorities
Employees must have been on your PAYE payroll on 28 February 2020, and can be any of the
- Full-time employees
- Part-time employees
- Employees on agency contracts
- Employees on flexible or zero-hour contracts
This information is correct at the time of writing 27 March 2020 but may change given the
fluctuation in daily guidance.
Should you still have any questions or wish for an expert in employment law to guide you through the process please contact firstname.lastname@example.org or 0151 480 5777.